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Sep 30, 2022
Quad Q3 2022 Earnings Report
Net sales increased and adjusted EBITDA grew due to print segment share gains, increased pricing, and investments in labor, inventory, and equipment.
Key Takeaways
Quad/Graphics reported strong third-quarter results, with net sales up 18% year-over-year and adjusted diluted earnings per share increasing by 78%. The company raised its full-year net sales guidance range to 8%-10% growth, driven by strong execution and continued sales momentum.
Net Sales increased 18% compared to the third quarter of 2021.
Net Earnings were $14 million, consistent with the third quarter of 2021.
Adjusted EBITDA increased to $69 million compared to $55 million in the third quarter of 2021, excluding a $13 million property insurance gain in 2021.
Adjusted Diluted Earnings Per Share grew to $0.32 compared to $0.18 in the third quarter of 2021.
Revenue by Segment
Forward Guidance
Quad increased its Net Sales outlook and narrowed its remaining full-year 2022 guidance.
Positive Outlook
- Net Sales Change increased from 3% to 7% to 8% to 10%.
- Full-Year Adjusted EBITDA is expected to be between $235 to $255 million.
- Free Cash Flow is expected to be between $70 to $90 million.
- Year-End Debt Leverage Ratio is expected to be approximately 2.25x.
- Company is positioned to achieve higher year-over-year earnings in the fourth quarter.
Challenges Ahead
- Ongoing challenges from inflationary costs.
- Ongoing supply chain disruptions.
- Adjusted EBITDA guidance was narrowed from $230-$270 million to $235-$255 million.
- Free Cash Flow guidance was narrowed from $70-$100 million to $70-$90 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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